US: No reason to reproach the countries with significant trade deficit - Natixis
|Patrick Artus, Research Analyst at Natixis, questions out that does the United States have reason to reproach the countries with which it has a significant trade deficit?
Key Quotes
“The United States has significant trade deficits:
- In absolute terms, with Mexico, Germany, China and Japan;
- Given the size of the country, Mexico and China.”
“The Trump administration and the US Treasury are going to review the United States’ trade deficits to look for irregularities and “unfair” practices in the countries with which it has a significant trade deficit.”
“These may be:
- A chronic and deliberate exchange-rate undervaluation;
- Export prices that are lower than production costs;
- Barriers to imports of US products.”
“We find the following irregularities:
- A deliberate currency undervaluation in Japan since 2005;
- Export prices below production costs in Japan since 2008 and in China;
- An abnormally low level of imports from the United States in Japan and the euro zone.”
“We see that the United States has reason to complain about Japan; does not have much reason to complain about China or Germany; has no reason to complain about Mexico.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.